The Spanish Ministry of Consumer Affairs (Consumo) has opened an investigation into major companies that manage hundreds of holiday rental properties across various regions of Spain, including the Canary Islands.
The probe aims to determine whether these companies are engaging in "misleading practices" and other legal violations pertaining to consumer protection laws.
According to sources from the Ministry, the investigation is focusing on operations involving tourist apartments that, despite holding the necessary licenses, may be managed irregularly by intermediary companies.
"Misleading practices" are defined as any conduct that includes false information, including reviews, or, even if truthful, is presented in a way that could deceive consumers, potentially altering their economic behaviour. This definition aligns with the Spanish law on unfair competition.
The Ministry highlights that misleading practices could involve fraudulent claims or creating a false impression that a business or professional is not operating within the framework of their official activities. Additionally, it includes situations where intermediaries might present themselves deceitfully as consumers or users.
This investigation is a continuation of efforts led by Minister Pablo Bustinduy through the Directorate-General for Consumption. It adds to a previous probe initiated in June. That investigation scrutinised advertisements on platforms promoting properties for holiday lets without holding the required licences, a clear violation of consumer protection laws.
Broader Issues in the Housing Market
In addition to irregularities in the tourist accommodation sector, the Ministry recently examined real estate agencies suspected of abusive practices in long term rental management. Complaints include requiring tenants to pay commissions or management fees for rental processing, mandating temporary contracts without justification (holiday let contracts), and enforcing clauses deemed irregular under current regulations.
These investigations align with Bustinduy’s efforts to address Spain’s ongoing housing crisis. He has repeatedly highlighted housing as one of the nation’s most pressing issues. Among his proposals was a push to impose a 21% VAT on holiday rentals, aligning them with the tax rate applied to hotels. However, this measure was excluded from the fiscal package recently approved by the government.
